Netflix uses AI effects for first time to cut costs

Netflix says it has used visual effects created by generative artificial intelligence (AI) in one of its original TV shows for the first time.

The streaming giant's co-chief executive Ted Sarandos said AI, which produces videos and images based on prompts, was used to create a scene of a building collapsing in the Argentine science fiction show, The Eternauts.

He said the technology allowed the production team to complete sequences faster and at a lower cost.

The use of generative AI is controversial in the entertainment industry over concerns it creates content using others' work without their consent and fears that it will replace the work of humans.

Mr Sarandos made his comments as Netflix announced a 16% rise in revenue to $11bn (£8.25bn) for the three months to the end of June compared to the same period last year. Profits rose from $2.1bn to $3.1bn.

The streaming firm said the better-than-expected performance was boosted by the success of the third and final series of South Korean thriller Squid Game, which has so far attracted 122 million views.

Asked about Netflix's use of AI, Mr Sarandos said the technology has allowed productions with smaller budgets to use advanced visual effects.

The generative AI used in The Eternauts helped its production team to complete a sequence showing the collapse of a building in Buenos Aires 10 times faster than if they had used traditional special effects tools, he said.

"The cost of it would just wouldn't have been feasible for a show in that budget.

"That sequence actually is the very first [generative] AI final footage to appear on screen in a Netflix original series or film. So the creators were thrilled with the result," said Mr Sarandos.

AI was among the key concerns raised during a Hollywood strike in 2023.

During the three-month walkout, the Screen Actors Guild–American Federation of Television and Radio Artists union called for tighter regulation of the use of AI.

Some in the industry have criticised the use of AI in film, calling it degrading to the craft.

In 2024, film mogul Tyler Perry halted plans for a $800m expansion of his studio in Atlanta over fears that the rapid advancement in AI-generated videos would affect jobs.

AI tools like OpenAI's Sora were being announced at the time, causing awe at the quality of footage it could create from simple text prompts, but also concerns about job security.

Davier Yoon, co-founder of Singapore animation studio CraveFX, said Netflix's adoption of generative AI came as no surprise as more major studios are welcoming the technology.

Generative AI adds to the list of digital tools that visual effect artists can pick to bring ideas to life, he said.

"It feels like a matter of time. AI definitely opens the gate to allow smaller studios to achieve big budget-looking visuals," said Mr Yoon.

"Ultimately, it is the artist who decides what is in the final image, not AI."